Monday, 4 February 2013

The (EU) Union Angela Merkel does not want to talk about

German chancellor Angela Merkel has on several occasions let it be known that the European currency union (the euro) is not enough - ultimately there must also be a fiscal union and a political union.

However, what Merkel has chosen to "forget" is that all these unions cannot function without a fourth union - a transfer union (a European community based on shared liability).

A transfer union would in practice mean that Germany and the few other well functioning EU member states would have to transfer huge - and I mean really huge - amounts of money, above all to the southern member countries, such as Greece,Spain, Portugal, Italy as well as some of the new member countries.

The cost of integrating the former DDR into Germany (approximately 1600 billion euro (1990 - 2009) will pale, compared with the transfers needed to the "less developed" member countries in a full-fledged transfer union. The German euro bail out payments so far are also just a trifle, compared to what is needed in a transfer union.

This is of course why neither Merkel, nor any other German politician, is willing to tell the truth to the paymasters - the German taxpayers. But sooner or later the truth will come out - and that will be the end of Merkel's "impossible (and stupid) dream". However, Merkel and all the other dishonest EU leaders know that they will be retired when it happens, leaving it for others to sort out the mess.